[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4350 Introduced in House (IH)]
<DOC>
119th CONGRESS
1st Session
H. R. 4350
To establish a loan program to expand capabilities to manufacture
critical materials to secure the United States supply chain, to amend
the Internal Revenue Code of 1986 to provide credits for qualified
investments into critical material facilities and production credits
for manufacturing critical materials, and to authorize cross-cutting
research, development, and demonstration activities relating to
critical material supply chains, and for other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
July 10, 2025
Ms. Stevens (for herself and Mr. Clyburn) introduced the following
bill; which was referred to the Committee on Ways and Means, and in
addition to the Committees on Energy and Commerce, Natural Resources,
Education and Workforce, and Science, Space, and Technology, for a
period to be subsequently determined by the Speaker, in each case for
consideration of such provisions as fall within the jurisdiction of the
committee concerned
_______________________________________________________________________
A BILL
To establish a loan program to expand capabilities to manufacture
critical materials to secure the United States supply chain, to amend
the Internal Revenue Code of 1986 to provide credits for qualified
investments into critical material facilities and production credits
for manufacturing critical materials, and to authorize cross-cutting
research, development, and demonstration activities relating to
critical material supply chains, and for other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE; TABLE OF CONTENTS.
(a) Short Title.--This Act may be cited as the ``Unearth America's
Future Act''.
(b) Table of Contents.--The table of contents for this Act is as
follows:
Sec. 1. Short title; table of contents.
TITLE I--RESILIENT EXPANSION OF STRATEGIC INDUSTRIES
Sec. 101. Sense of Congress.
Sec. 102. National center for secure and transparent critical material
supply chains.
Sec. 103. Loan program for resilient critical material supply chains.
Sec. 104. Required collaboration.
Sec. 105. Material supply chain public-private partnership.
Sec. 106. Authorization of appropriations.
Sec. 107. Termination.
Sec. 108. Definitions.
TITLE II--CRITICAL MATERIAL TAX CREDITS
Sec. 201. Critical material investment tax credit.
Sec. 202. Critical material production tax credit.
Sec. 203. Consultation.
TITLE III--CRITICAL MATERIAL RESEARCH AND DEVELOPMENT
Sec. 301. Clarifying mining research at the National Science
Foundation.
Sec. 302. Clarifying mining research at the Department of Energy.
Sec. 303. Critical materials research and development.
Sec. 304. Critical material standards and metrology.
Sec. 305. Critical materials demonstration.
Sec. 306. Definitions.
TITLE I--RESILIENT EXPANSION OF STRATEGIC INDUSTRIES
SEC. 101. SENSE OF CONGRESS.
It is the sense of Congress that the Secretary of Commerce, in
consultation with the Secretary of State, should carry out the actions
and collaborations authorized by this title in a manner that--
(1) strengthens the security and resiliency of the critical
material supply chain for the national, energy, and economic
security of the United States, including through--
(A) prioritizing expanded domestic capabilities;
and
(B) expanding foreign capabilities to support such
expanded domestic capabilities;
(2) promotes innovative technologies, materials, and
techniques to create secure supply chains while preventing
environmental degradation;
(3) supports industrial decarbonization throughout the
supply chain;
(4) defends worker rights through strong workplace
protections, including through neutrality agreements, and
removes human rights violations across the supply chain;
(5) supports community engagement and consultation to
prevent disenfranchisement and other environmental injustices
from occurring; and
(6) grows the economic strength and bolsters the leadership
of the manufacturing sector of the United States, including its
workforce.
SEC. 102. NATIONAL CENTER FOR SECURE AND TRANSPARENT CRITICAL MATERIAL
SUPPLY CHAINS.
(a) Establishment.--The Secretary of Commerce, in consultation with
the Secretary of State, and through the collaboration required under
section 104, shall establish a national center (in this title referred
to as the ``Center'') in the Department of Commerce to support the
security and resilience of the critical material supply chain by
advancing policy recommendations, best practices, and other activities
to create a critical material supply chain with the following
characteristics:
(1) Security and resiliency against supply chain
disruptions.
(2) Environmental sustainability.
(3) Workforce security and safety.
(4) Innovativeness.
(b) Functions.--The functions of the Center shall be as follows:
(1) To study and report on emerging trends, opportunities,
and challenges of the critical material supply chain to provide
the Federal Government a robust understanding of such supply
chain, including--
(A) market dynamics;
(B) pricing and availability dynamics; and
(C) transparency and traceability.
(2) To study, report, and provide recommendations to the
Federal Government on current and future policies that the
United States and the partners and allies of the United States
should evaluate to promote the security and resilience of the
critical material supply chain.
(3) To promote environmental sustainability in the critical
material supply chain by--
(A) disseminating information on relevant best
practices; and
(B) providing technical assistance and other
resources, as determined by the head of the Center as
appropriate and not duplicative of other technical
assistance and resources provided by the Federal
Government, to such industry to support the adoption
of--
(i) environmental protection practices,
including the use of emerging technologies, to
prevent environmental degradation within
extraction processes;
(ii) industrial decarbonization practices;
(iii) innovative downstream applications of
critical materials, including qualified
substitutes to decrease reliance on supply
chains vulnerable to foreign disruptions; and
(iv) practices that improve the ability of
critical materials to be recycled and reused to
support circular economies (as defined in
section 2 of the Save Our Seas 2.0 Act (33
U.S.C. 4201)).
(4) To strengthen the workforce for the critical material
supply chain industry, including through education and
workforce pathways and the dissemination of best practices, in
collaboration with the Secretary of Labor, that ensure wage
rates are determined by free bargaining between labor and
management.
(5) To strengthen the innovation ecosystem related to the
critical material supply chain industry.
(6) To collaborate with allies of the United States to
support the development of resilient supply chains for critical
materials, including through creating innovative partnerships
with such allies and other organizations.
(c) Study Publication.--The head of the Center shall make publicly
available on a website of the Center each report created by the Center
pursuant to paragraph (1) or (2) of subsection (b).
SEC. 103. LOAN PROGRAM FOR RESILIENT CRITICAL MATERIAL SUPPLY CHAINS.
(a) Establishment.--Not later than 1 year after the date of the
enactment of this Act and subject to the availability of
appropriations, the Secretary of Commerce, acting through the head of
the Center and in consultation with the Secretary of State and in
collaboration with the heads of the Federal agencies and departments
described in section 104(a), shall establish a program to make or
guarantee loans made to covered entities to acquire, establish, or
enhance facilities related to developing domestic and foreign critical
material manufacturing capabilities for the national, energy, and
economic security of the United States.
(b) Eligibility.--A covered entity shall be eligible for a loan
made or guaranteed under this section if the covered entity meets each
of the following criteria:
(1) The covered entity has a specific plan to use such loan
for constructing, expanding, modernizing, or repurposing a
facility, including the acquisition of relevant specialized
equipment or a facility manufacturing such relevant specialized
equipment, in the United States or in a foreign country of
interest, for critical material manufacturing.
(2) The covered entity has an executable plan that supports
resilient supply chains for the national, energy, and economic
security of the United States, including by identifying--
(A) the type of critical material, including
qualified substitute and byproducts, the covered entity
will produce at the facility described in paragraph
(1);
(B) the customers or categories of customers, to
which the covered entity plans to sell the critical
materials so produced;
(C) the benefit of such planned sales to the
security and resilience of the critical material supply
chain within the United States, including consideration
of any secondary effects strengthening a relevant
supply chain with an allied country; and
(D) the risks to the supply chains of critical
materials for the facility described in paragraph (1)
with respect to which the covered entity is seeking a
loan or loan guarantee under this section that the
covered entity must mitigate, including risks
associated with access, availability, confidentiality,
integrity, transparency, and any lack of geographic
diversification in such critical material supply
chains.
(3) The covered entity and the operation of the proposed
facility will support and expand existing actions taken by the
United States Government, including through the Department of
Defense and the Department of Energy, to strengthen the
resiliency of the critical material supply chain.
(4) The covered entity--
(A) can operate the facility on an ongoing basis,
in accordance with subparagraphs (A), (B), and (C) of
paragraph (2), without depending on additional Federal
assistance;
(B) can reasonably repay such loan; and
(C) meets such other standards for financial health
as determined appropriate by the Secretary.
(5) The covered entity--
(A) will not use funds received under such loan
with respect to activities or operations located in a
foreign country of concern or a nonmarket economy
country;
(B) is not organized under the laws of a foreign
country of concern or a nonmarket economy country or of
any jurisdiction within such a country;
(C) is not owned, controlled, or operated by a
foreign entity of concern;
(D) is not otherwise in a partnership or
association with a foreign entity of concern; and
(E) is not engaged in any joint research or
technology licensing effort for any innovative
technology, material, or technique for the critical
material supply chain with a foreign entity of concern
or a foreign country of concern.
(6) The covered entity has a specific plan to follow
existing procurement policies as implemented by the core jobs
mandate in section 2(a)(1) of the Export-Import Bank Act of
1945 (12 U.S.C. 635(a)(1)).
(c) Additional Considerations for Review.--In determining whether
to make or guarantee a loan to a covered entity under this section with
respect to a facility described in subsection (b)(1), the Secretary
shall consider--
(1) whether the covered entity has an executable plan with
respect to such facility to carry out--
(A) development of the local workforce by creating
and expanding educational and workforce pathways,
including pathways developed through engagement with
relevant local entities in the community in which such
facility is or will be located; and
(B) to the greatest extent possible, environmental
sustainability initiatives, including the use of a
relevant industrial decarbonization practice or
environmentally benign mining practices, as appropriate
to such facility; and
(2) with respect to a covered entity seeking a loan made or
guaranteed for a facility located in a foreign country of
interest, such additional factors as the Secretary, in
consultation with the Secretary of State and the United States
Trade Representative, may determine necessary to ensure that--
(A) the covered entity will not use forced or child
labor or use other practices that create unduly
dangerous workplace conditions that are not consistent
with the laws of the United States;
(B) the covered entity will meet or exceed United
States permissible air and water quality standards as
defined under section 101 of the Clean Air Act (42
U.S.C. 7401) and section 101 of the Federal Water
Pollution Control Act (33 U.S.C. 1251), and, to the
greatest extent possible, prevent environmental
degradation related to the construction and operation
of the facility, including through the use of relevant
industrial decarbonization practices and
environmentally benign mining practices;
(C) the covered entity is not subject to covered
trade action; and
(D) the facility will not be located in a foreign
country of concern or a nonmarket economy country or be
associated with a foreign entity of concern, including
through existing or future partnerships between the
covered entity and any foreign entity of concern or an
associated subsidiary.
(d) Expedited Review.--The Secretary may waive subsection (c) with
respect to a loan guarantee under this section for a loan with respect
to a facility described in subsection (b)(1) if such facility is
located within the United States.
(e) Prioritization.--In making or guaranteeing loans under this
section, the Secretary shall prioritize loans with respect to
facilities that--
(1) expand the domestic supply of critical materials that
the Secretary determines necessary to the--
(A) the national security and defense of the United
States;
(B) the energy security and independence of the
United States; and
(C) the economic competitiveness of the United
States;
(2) have not been supported by prior direct investment
(excluding research, development, or demonstration support) by
the Department of Defense, the Department of Energy, or any
other Federal department or agency, unless the Secretary
determines that making or guaranteeing such loan is in the best
interest of carrying out the purposes described in paragraph
(1), including a loan to a covered entity with respect to a
facility or activity to expand the domestic supply of such
critical minerals that was supported by a prior Federal award;
and
(3) purchase United States-made goods and services,
including mining equipment, machinery, iron, steel, and other
goods required to for critical material manufacturing.
(f) Notification.--Not later than 15 days before making or
guaranteeing a loan under this section that exceeds $100,000,000, the
Secretary shall notify the appropriate committees of Congress of such
loan.
(g) Conditions of Loans and Loan Guarantees.--
(1) Application.--
(A) In general.--A covered entity seeking a loan
made or guaranteed under this section shall submit to
the Secretary an application at such time, in such
manner, and containing such information as the
Secretary determines appropriate, including such
records and other information the Secretary determines
appropriate to determine the eligibility of a covered
entity and whether the facility with respect to which
such covered entity is seeking such loan is in the
interest of the United States.
(B) Guaranteed loans.--In addition to the
information required to be included in the application
under subparagraph (A) and subject to subsection (d), a
covered entity seeking a loan guaranteed under this
section shall include in such application such
information as the Secretary determines appropriate to
determine whether the loan with respect to which such
covered entity is seeking such guarantee is eligible to
be guaranteed under this section, including the lender
making such loan and the terms and conditions of such
loan.
(2) Rates, terms, and repayments of loans.--A loan made or
guaranteed under this section shall--
(A) be disbursed in installments pursuant to a
schedule determined by the Secretary;
(B) have an interest rate that does not exceed a
level that the Secretary determines appropriate, taking
into account, as of the date on which the loan is made,
the cost of funds to the Department of the Treasury for
obligations of comparable maturity; and
(C) have a term of not more than 25 years.
(3) Responsible lender.--No loan may be guaranteed under
this section unless the Secretary determines that--
(A) the lender that made such loan is responsible;
and
(B) such loan provides adequate provisions to
protect the interest of the United States.
(4) Limitation.--
(A) Certification.--A loan made or guaranteed under
this section may not exceed the following amounts
unless the President certifies to the appropriate
committees of Congress that a loan exceeding such
amounts is necessary to significantly increase the
supply of critical materials relevant to the national,
energy, and economic security of the United States:
(i) For a loan with respect to a facility
located within the United States, the lesser
of--
(I) $1,000,000,000 or 50 percent of
the total cost of the construction,
expansion, modernization, or
repurposing of such facility for which
the covered entity is seeking such loan
in the case of a loan made under this
section; or
(II) $1,000,000,000 or 75 percent
of the total cost of the construction,
expansion, modernization, or
repurposing of such facility for which
the covered entity is seeking such loan
in the case of a loan guaranteed under
this section.
(ii) For a loan with respect to a facility
located outside of the United States, the
lesser of $250,000,000 or 25 percent of the
total cost of the construction, expansion,
modernization, or repurposing of such facility
for which the covered entity is seeking such
loan.
(B) Maximum award.--Notwithstanding subparagraph
(A), a loan made or guaranteed under this section may
not exceed the following amounts:
(i) For a loan with respect to a facility
located within the United States, the lesser
of--
(I) $2,000,000,000 or 50 percent of
the total cost of the construction,
expansion, modernization, or
repurposing of such facility for which
the covered entity is seeking such loan
in the case of a loan made under this
section; or
(II) $2,000,000,000 or 75 percent
of the total cost of the construction,
expansion, modernization, or
repurposing of such facility for which
the covered entity is seeking such loan
in the case of a loan guaranteed under
this section.
(ii) For a loan with respect to a facility
located outside of the United States, the
lesser of $500,000,000 or 25 percent of the
total cost of the construction, expansion,
modernization, or repurposing of such facility
for which the covered entity is seeking such
loan.
(5) Additional terms.--A loan made or guaranteed under this
section may include any other terms and conditions that the
Secretary determines to be appropriate.
(6) Reasonable prospect of repayment criteria.--For the
purposes of determining whether to make or guarantee a loan
under this section, the Secretary shall determine whether a
covered entity has a reasonable prospect of repaying such loan
based on the following:
(A) The protection of the financial interests of
the United States provided by contractual terms of the
project the covered entity plans to perform.
(B) The expected financial strength of the covered
entity--
(i) at the time the loan or guarantee would
be approved; and
(ii) throughout the loan term after the
project is completed.
(C) The financial strength of the investors and
strategic partners of the covered entity, if
applicable.
(D) Other financial metrics, analyses, or criteria
relied upon by the private lending community and other
nationally recognized credit rating agencies that the
Secretary determines relevant to the evaluation of the
financial strength of the covered entity.
(h) Use of Funds.--A covered entity that receives a loan made or
guaranteed under this section may only use the awarded amounts for the
following purposes of supporting activities described in subsection
(a), as documented in the application submitted by the covered entity
under subsection (g)(1), to--
(1) finance the construction, expansion, modernization, or
repurposing of a facility, including through the acquisition of
relevant equipment and site development, for critical material
manufacturing;
(2) finance the construction, expansion, modernization, or
repurposing of a facility to manufacture relevant specialized
equipment described in subsection (b)(1), including site
development;
(3) finance the construction, expansion, modernization, or
repurposing of a facility, including through the acquisition of
relevant specialized equipment, for the research, development,
and demonstration within the United States of innovative
technologies, materials, or techniques related to establishing
resilient critical material supply chain;
(4) support the expansion or creation of educational and
workforce pathways, including engagement with the community and
relevant local entities through innovative partnerships,
including apprenticeship programs;
(5) support activities related to environmental protection
and other sustainability practices, including the
implementation of industrial decarbonization practices; or
(6) pay reasonable costs related to the operating expenses
for a facility described in paragraph (1), (2), or (3),
including hiring a specialized workforce, acquiring essential
materials, and performing complex equipment maintenance, as
determined appropriate by the Secretary.
(i) Loan Agreement.--
(1) In general.--As a condition to receive a loan made or
guaranteed under this section, the covered entity receiving
such loan shall enter into an agreement with the Secretary
under which, during the 10-year period beginning on the date of
the first disbursement of such loan, the covered entity--
(A) will not engage in any significant transaction,
as defined in the agreement, involving the expansion of
existing critical materials capabilities of a foreign
entity of concern or a foreign entity in a foreign
country of concern or a nonmarket economy country;
(B) will notify the Secretary of any planned
transactions involving the covered entity relating to
the expansion of existing critical materials
capabilities by a foreign entity of concern, a foreign
country of concern, or a nonmarket economy country;
(C) will provide records and other necessary
information at the request of the Secretary to review
the compliance of the covered entity to terms of the
agreement; and
(D) will return the full amount of such loan that
has been disbursed if--
(i) the Secretary determines that such
covered entity violated the agreement;
(ii) such covered entity does not remedy
such violation or the Secretary determines that
such violation cannot be remedied; and
(iii) the Secretary determines that the
return of such amounts is necessary.
(2) Violation of agreement.--If the Secretary determines
that a covered entity violated the agreement such covered
entity entered into under paragraph (1) with respect to a loan
made or guaranteed under this section or failed to provide
proof required pursuant to paragraph (3)(A)(iii) with respect
to a planned transaction in accordance with such paragraph the
Secretary--
(A) shall--
(i) in the case of a loan that is made
under this section, revoke the undisbursed
amount of such loan and, if the Secretary
determines necessary under paragraph
(1)(D)(iii), recover the full amount of such
loan that has been disbursed; and
(ii) in the case of a loan guaranteed under
this section, revoke the guarantee of such
loan; and
(B) if the Secretary determines that such planned
transaction would harm the national, energy, and
economic security of the United States, may take other
corrective action, including recommending corrective
action to the heads of such other Federal departments
or agencies, as may be appropriate to the duties of
such departments or agencies.
(3) Notification of planned transactions.--
(A) In general.--Not later than 90 days after the
date of receipt of a notification described in
subparagraph (B) of paragraph (1) from a covered entity
pursuant to an agreement between such covered entity
and the Secretary entered into under such paragraph,
the Secretary shall--
(i) determine whether the planned
transaction described in such notification
would violate such agreement;
(ii) notify the covered entity of the
determination; and
(iii) if the Secretary determines that such
planned transaction would violate such
agreement, require such covered entity to
provide to the Secretary proof that such
covered entity will not proceed with such
planned transaction not later than 45 days
after the Secretary provides the notification
under clause (ii) with respect to such
determination.
(B) Congressional notification.--If the Secretary
requires a covered entity to provide proof under
subparagraph (A)(iii) with respect to a planned
transaction, not later than 90 days after the earlier
of the date on which the Secretary receives such proof
or the date on which the Secretary takes action under
subparagraph (2) pursuant to the failure of such
covered entity to provide such proof, the Secretary
shall submit to the appropriate committees of
Congress--
(i) a notification of the planned
transaction;
(ii) a brief description of how the
Secretary determined that the planned
transaction would be a violation; and
(iii) a summary of any actions or planned
actions in response to such planned
transaction.
(4) Opportunity for a hearing.--The Secretary may make a
determination described in paragraphs (1)(D)(i), (1)(D)(ii),
(2), or (3)(A) with respect to a covered entity only after such
covered entity has had an opportunity for a hearing on the
record with respect to such determination.
(j) Clawback.--
(1) Target dates.--As a condition of making or guaranteeing
loans under this section, the Secretary shall establish target
dates by which the construction, expansion, modernization, or
repurposing, as applicable, of the facility with respect to
which such loan was made shall commence and complete.
(2) Progressive recover for delays.--
(A) In general.--If the construction, expansion,
modernization, or repurposing, as applicable, of the
facility does not commence and complete within the
target dates established under paragraph (1) or the
revised target dates established under subparagraph
(B)(ii), the Secretary shall progressively recover or
disburse up to the full amount of the loan made or
guaranteed under this section.
(B) Waiver.--
(i) In general.--The Secretary may waive
subparagraph (A) with respect to a failure of a
covered entity to commence the construction,
expansion, modernization, or repurposing, as
applicable, of a facility in accordance with
the commencement date for such facility
established under paragraph (1) if the
Secretary makes a formal determination that
such covered entity could not foresee or
control the circumstances causing such failure,
including a failure due to supply chain
disruptions, other than such a failure
resulting from the failure of the covered
entity to cooperate with any relevant
regulatory agencies for permit approval.
(ii) Revised target dates.--If the
Secretary waives subparagraph (A) with respect
to the failure of a covered entity to commence
the construction, expansion, modernization, or
repurposing, as applicable, of a facility in
accordance with the commencement date for such
facility established under paragraph (1)--
(I) the Secretary shall establish
revised target dates by which the
construction, expansion, modernization,
or repurposing, as applicable, of the
facility with respect to which such
loan was made shall commence and
complete; and
(II) the relevant agreement under
subsection (i)(1) shall be amended to
reflect such revised target dates.
(3) Congressional notification.--The Secretary shall notify
appropriate committees of Congress--
(A) of the target dates determined with respect to
each loan made or guaranteed under this section that
exceeds $100,000,000; and
(B) not later than 15 days after the provision of a
waiver under paragraph (2)(B), of the terms of such
waiver.
(k) Labor-Management Cooperation.--
(1) In general.--Notwithstanding any other provision of
law, including the National Labor Relations Act (29 U.S.C. 151
et seq.), this subsection shall apply to any recipient of a
loan under this section who is an employer and any labor
organization who represents or seeks to represent any employees
or only those employees who perform or will perform work funded
by a loan provided under this section.
(2) Recognition.--Any employer receiving a loan under this
section shall recognize for purposes of collective bargaining a
labor organization that demonstrates that a majority of the
employees in a unit appropriate for such purposes and who
perform or will perform work funded by a loan provided under
this section have signed valid authorizations designating the
labor organization as their collective bargaining
representative and that no other labor organization is
certified or recognized pursuant to section 9 of the National
Labor Relations Act (29 U.S.C. 159) as the exclusive
representative of any of the employees in the unit who perform
or will perform such work. Upon such showing of majority
status, the employer shall notify the labor organization and
the National Labor Relations Board that the employer--
(A) has determined that the labor organization
represents a majority of the employees in such unit who
perform or will perform such work; and
(B) is recognizing the labor organization as the
exclusive representative of the employees in such unit
who perform or will perform such work for the purposes
of collective bargaining pursuant to that section.
(3) Dispute resolution and unit certification.--If a
dispute over majority status or the appropriateness of the unit
described in paragraph (2) arises between the employer and the
labor organization, either party may request that the National
Labor Relations Board investigate and resolve the dispute. If
the Board finds that a majority of the employees in a unit
appropriate for purposes of collective bargaining who perform
or will perform work funded by a loan provided under this
section have signed valid authorizations designating the labor
organization as their representative for such purposes and that
no other individual or labor organization is certified or
recognized as the exclusive representative of any of the
employees in the unit who perform or will perform such work for
such purposes, the Board shall not direct an election but shall
certify the labor organization as the representative described
in section 9(a) of the National Labor Relations Act (29 U.S.C.
159(a)).
(4) Meetings and collective bargaining agreements.--Not
later than 10 days after an employer receiving funding under
this section receives a written request for collective
bargaining from a recognized or certified labor organization
representing employees who perform or will perform work funded
by a loan provided under this section, or within such period as
the parties agree upon, the labor organization and employer
shall meet and commence to bargain collectively and shall make
every reasonable effort to conclude such bargaining and sign a
collective bargaining agreement.
(5) Mediation and conciliation.--If, after the expiration
of the 90-day period beginning on the date on which collective
bargaining under paragraph (4) began, or such additional period
as the parties may agree upon, the parties have failed to reach
an agreement, either party may notify the Federal Mediation and
Conciliation Service (referred to in this subsection as the
``Service'') of the existence of a dispute and request
mediation. Whenever such a request is received, it shall be the
duty of the Service promptly to put itself in communication
with the parties and to use its best efforts, by mediation and
conciliation, to bring them to agreement.
(6) Tripartite arbitration.--
(A) In general.--If, after the expiration of the
30-day period beginning on the date on which the
request for mediation is made under paragraph (5), or
such additional period as the parties may agree upon,
the Service is not able to bring the parties to
agreement by mediation and conciliation, the Service
shall refer the dispute to a tripartite arbitration
panel established in accordance with such regulations
as may be prescribed by the Service.
(B) Members.--A tripartite arbitration panel
established under this clause with respect to a dispute
shall be composed of 1 member selected by the labor
organization, 1 member selected by the employer, and 1
neutral member mutually agreed to by the labor
organization and the employer. Each such member shall
be selected not later than 14 days after the expiration
of the 30-day period described in subparagraph (A) with
respect to such dispute. Any member not so selected by
the date that is 14 days after the expiration of such
period shall be selected by the Service.
(C) Decisions.--A majority of a tripartite
arbitration panel established under this clause with
respect to a dispute shall render a decision settling
the dispute as soon as practicable, and (absent
extraordinary circumstances or by agreement or
permission of the parties) not later than 120 days
after the establishment of such panel. Such a decision
shall be binding upon the parties for a period of 2
years, unless amended during such period by written
consent of the parties. Such decision shall be based
on--
(i) the financial status and prospects of
the employer;
(ii) the size and type of the operations
and business of the employer;
(iii) the cost of living of the employees;
(iv) the ability of the employees to
sustain themselves, their families, and their
dependents on the wages and benefits they earn
from the employer; and
(v) the wages and benefits other employers
in the same business provide their employees.
(7) Contractors and subcontractors.--Any employer receiving
funds under this section to procure goods or services shall
require a contractor or subcontractor, whose employees perform
or will perform work funded by a loan provided under this
section, that contracts or subcontracts with the employer to
comply with the requirements set forth in paragraphs (1)
through (6).
(8) Definitions.--In this subsection, the terms
``employee'', ``employer'', and ``labor organization'' have the
meanings given the terms in section 2 of the National Labor
Relations Act (29 U.S.C. 152).
(9) Limitation of funds.--Funds appropriated to carry out
this Act may not be used to assist, promote, or deter
organizing of labor organizations.
(l) Wage Rate Requirements.--
(1) Davis-bacon.--All laborers and mechanics employed by
the covered entity receiving funding under this section, or
employed by contractors or subcontractors related to a covered
project, shall be paid wages at rates not less than those
prevailing on similar projects in the locality, as determined
by the Secretary of Labor in accordance with subchapter IV of
chapter 31 of title 40, United States Code (commonly referred
to as the ``Davis-Bacon Act'').
(2) Authority.--The Secretary of Labor shall have, with
respect to the labor standards specified in this subsection,
the authority and functions set forth in Reorganization Plan
Numbered 14 of 1950 (5 U.S.C. App.; relating to coordination of
administration and consistency of enforcement of certain labor
standards for Federal employees) and section 3145 of title 40,
United States Code.
(m) Oversight.--Not later than four years after the first
disbursement of the first loan made or guaranteed under this section,
the Inspector General of the Department of Commerce, in consultation
with the Inspector General of the Department of State, shall audit the
program and submit to the appropriate committees of Congress a report
containing the results of such audit under this subsection to assess--
(1) whether the national center has been established and
operated in accordance with section 102; and
(2) whether the loan program has been established and
operated in accordance with this section, including--
(A) whether the Secretary is making or guaranteeing
loans under this section only to covered entities that
meet the requirements in subsection (b);
(B) whether the covered entities receiving loans
made or guaranteed under this section are using the
amounts of such loans in accordance with subsection
(h);
(C) whether the Secretary has complied with the
limitations under subsection (g)(4) and under section
106(c); and
(D) whether the Secretary is carrying out the
agreements required under subsection (i), including any
congressional notifications required by such
subsection.
SEC. 104. REQUIRED COLLABORATION.
(a) Required Collaboration.--In carrying out the activities under
this title, the Secretary of Commerce, in consultation with the
Secretary of State, shall coordinate the activities of the Center and
the program established by section 103 with relevant Federal agencies
and departments to leverage existing activities across the United
States Government to strengthen the critical materials supply chain of
the United States, including exchange of information regarding the
United States critical materials supply chain, to the extent consistent
with the protection of information under other applicable authorities.
Such relevant Federal agencies and departments shall include--
(1) the Department of Agriculture;
(2) the Department of Defense;
(3) the Department of Energy;
(4) the Department of Health and Human Services;
(5) the Department of Homeland Security;
(6) the Department of the Interior;
(7) the Department of Labor;
(8) the Department of the Treasury;
(9) the Export-Import Bank of the United States;
(10) the United States International Development Finance
Corporation;
(11) the White House Council of Environmental Quality;
(12) the White House Office of Science and Technology
Policy;
(13) the White House Office of the United States Trade
Representative; and
(14) other Federal agencies and departments that the
Secretary determines necessary to carry out the activities in
this title.
(b) Oversight.--Not later than 4 years after the date of the
disbursement of the first award under section 103, the Inspector
General of the Department of Commerce, in consultation with the
Inspector General of the Department of State, shall submit to the
appropriate committees of Congress a report containing the results of
an audit of whether the Secretary has sufficiently carried out the
interagency coordination activities required by subsection (a) and
consulted with the Secretary of State as required under this title to
support the development of secure critical material supply chains in
the interest of the national, energy, and economic security of the
United States.
SEC. 105. MATERIAL SUPPLY CHAIN PUBLIC-PRIVATE PARTNERSHIP.
(a) Public-Private Partnership.--
(1) In general.--Not later than 1 year after the date of
enactment of this section, the Secretary, acting through the
head of the Center, in consultation with the Secretary of
State, and through the collaboration required under section
104, shall establish a public-private partnership to--
(A) support the development of a resilient supply
chain;
(B) bolster the national, energy, and economic
security of the United States; and
(C) support the development of supply chain
characteristics in the interests of the United States,
including--
(i) transparency and traceability;
(ii) environmental sustainability;
(iii) workforce security and safety; and
(iv) innovation.
(2) Duties.--The public-private partnership shall--
(A) engage with stakeholders from across the
critical material supply chain, prioritizing domestic
stakeholders, including through--
(i) convening such stakeholders for regular
meetings to inform the activities of the
public-private partnership; and
(ii) accepting membership from industry,
nonprofit organizations, trade associations,
academia, labor organizations, and equivalent
international partners;
(B) advise the Center on creating a robust
understanding of a critical material supply chain,
including through advancing the understanding of, with
respect to such supply chain--
(i) market dynamics including market
manipulation by foreign countries of concern;
(ii) pricing and availability dynamics;
(iii) transparency and traceability;
(iv) environmental sustainability;
(v) education and workforce development;
(vi) labor law compliance; and
(vii) barriers to adopting innovative
technologies, materials, and techniques;
(C) establish partnerships with international
partners, excluding foreign entities of concern or a
foreign entity in a foreign country of concern, to
advance the national, energy, and economic security of
the United States;
(D) operate the Investment Fund established under
subsection (b); and
(E) not later than one year after the public-
private partnership is established, and annually
thereafter, publish at least one report on the internet
website of the Department of Commerce summarizing the
activities undertaken by the public-private partnership
during the most recent fiscal year prior to publication
of such report, and such report shall include--
(i) a summary of the advice provided to the
Center established in section 102(a);
(ii) a summary of the membership of the
public-private partnership;
(iii) a summary of the activities carried
out by the Investment Fund established in
subsection (b); and
(iv) a summary of any international
collaborations carried out by the public-
private partnership.
(3) Funding.--Subject to the availability of
appropriations, out of the funds authorized to be appropriated
pursuant to section 106(a), the Secretary shall allocate up to
the following amounts to carry out this subsection:
(A) $15,000,000 for fiscal year 2026.
(B) $30,000,000 for fiscal year 2027.
(C) $45,000,000 for fiscal year 2028.
(D) $60,000,000 for fiscal year 2029.
(E) $75,000,000 for the period of fiscal year 2030
and each fiscal year thereafter prior to the expiration
of the program.
(b) Investment Fund.--
(1) In general.--Not later than one year after the
establishment of the public-private partnership under
subsection (a), the public-private partnership shall establish
an investment fund (in this section referred to as the
``Investment Fund'') to support existing Federal and private
investments to acquire, establish, or enhance facilities
related to developing domestic and foreign critical material
manufacturing capabilities for the national, energy, and
economic security of the United States.
(2) Duties.--The Investment Fund shall--
(A) accept and solicit funds from entities
described in subsection (a)(2)(A)(ii) to invest and
support facilities to expand domestic and foreign
capabilities to manufacture critical materials for the
national, energy, and economic security of the United
States, in accordance with the eligibility requirements
described in section 103(b);
(B) buy and sell critical materials from the global
marketplace, prioritizing domestic producers, to
support the transition to resilient supply chains with
stable market prices and store such purchased critical
materials within the United States;
(C) invest in innovative partnerships with critical
material supply chain stakeholders with a
prioritization for starts-ups, small and medium-sized
enterprises, and other entities supporting innovative
technologies, materials, or techniques;
(D) provide innovative financial tools and other
risk mitigation mechanisms, such as insurance products,
that follow existing procurement policies as
implemented pursuant to section 2(a)(1) of the Export-
Import Bank Act of 1945 (12 U.S.C. 625(a)(1)), directly
or in partnership with entities currently providing
such tools and mechanisms, to stabilize market prices
and support domestic capabilities;
(E) support demonstration, deployment, and adoption
activities related to innovative technologies,
materials, including qualified substitutes, or
techniques to promote sustainability and increased
resiliency, with sufficient research collaboration
safeguards to protect domestic proprietary information;
(F) invest acquired profit from activities in
subparagraphs (A) and (B) to further the mission of the
Investment Fund; and
(G) consult regularly with Federal agencies and
departments identified in section 104, including the
Export-Import Bank of the United States and the United
States International Development Finance Corporation,
to ensure alignment with existing Federal efforts
designed to promote, fund, resource critical material
manufacturing domestically or in a foreign country of
interest.
(3) Loan program eligibility.--
(A) In general.--The Investment Fund shall--
(i) be eligible to receive a loan under the
loan program established in section 103(a)
after submission of the application under
subparagraph (B) of this paragraph; and
(ii) not be eligible to apply for or
receive a loan guarantee under the loan program
in section 103(a).
(B) Application.--To receive a Federal loan under
the loan program established in section 103(a), the
Investment Fund shall submit to the Secretary an
application that includes--
(i) a list of projects, in accordance with
the eligibility requirements described in
section 103(b)(2), that the fund will support
through the receipt of a Federal loan under
such program; and
(ii) any other information the Secretary
determines appropriate to evaluate the
eligibility of the projects submitted under
clause (i) for such loan program.
(C) Award amount.--Each award made to the
Investment Fund under the loan program established in
section 103(a) shall--
(i) be in an amount the Secretary
determines appropriate; and
(ii) not exceed 25 percent of the available
loan authority of such loan program for a given
fiscal year.
(D) Eligible forgiveness.--Subject to the agreement
requirements under subparagraph (G) and to the extent
the Investment Fund maintains good standing, as
determined by the Secretary, such Secretary may forgive
all or part of a loan awarded to the Investment Fund
under this paragraph in an eligible fiscal year, in
accordance with the authorities of the agency.
(E) Tax treatment.--For purposes of the Internal
Revenue Code of 1986--
(i) no amount shall be included in the
gross income of the Investment Fund by reason
of forgiveness of indebtedness described in
subparagraph (D);
(ii) no deduction shall be denied, no tax
attribute shall be reduced, and no basis
increase shall be denied, by reason of the
exclusion from gross income provided by clause
(i); and
(iii) in the case that the Investment Fund
is a partnership or S corporation--
(I) any amount excluded from income
by reason of clause (i) shall be
treated as tax exempt income for
purposes of sections 705 and 1366 of
the Internal Revenue Code of 1986; and
(II) except as provided by the
Secretary of the Treasury, or a
delegate of such Secretary, any
increase in the adjusted basis of an
interest of a partner in a partnership
under section 705 of the Internal
Revenue Code of 1986, with respect to
any amount described in subclause (I),
shall equal the distributive share of
deductions of such partner resulting
from costs giving rise to forgiveness
described in subclause (I).
(F) Effective date for tax treatment.--The
provisions made by subparagraph (E) shall apply to
taxable years beginning after December 31, 2025.
(G) Required agreement.--Pursuant to section
103(i)--
(i) the Secretary shall enter into the
required agreement with the Investment Fund;
and
(ii) the Investment Fund shall take on full
responsibility for the required agreement and
the actions of the projects that use funds
awarded by the loan program established in
section 103(a) to the Investment Fund.
(H) Disclosure.--Not later than one year after date
on which the Investment Fund is established under
paragraph (1), and annually thereafter, the Investment
Fund shall provide an annual report to the Secretary
which shall--
(i) include all actions taken by the
Investment Fund upon receipt of each award;
(ii) include any additional information the
Secretary determines appropriate to ensure
robust oversight of the use of each loan
awarded to the Investment Fund; and
(iii) be published on the internet website
of the Department of Commerce.
(I) Clawback.--Pursuant to section 103(j), the
Secretary shall have the authority to recover, or
dispense of, up to the full amount of each loan awarded
by the loan program established in section 103(a) for a
given fiscal year if--
(i) the Investment Fund fails to comply
with the required agreement in subparagraph
(G); or
(ii) the Secretary is notified of the
inability of the Investment Fund to use such an
award in accordance with section 103(h).
(J) Failure to comply.--If the Secretary is not
satisfied with the actions taken by the Investment
Fund, including failure by the Investment Fund to
comply with the eligibility requirements for the loan
program established under section 103(a) or the
improper use of funds awarded by such loan program to
the Investment Fund, the Investment Fund shall--
(i) be ineligible for future awards by such
loan program; and
(ii) remain ineligible until--
(I) the Investment Fund presents an
executable plan that the Secretary
determines appropriate to satisfy the
requirements of section 103(b) or
section 103(h);
(II) the Secretary shall submit to
Congress a report outlining the
corrective actions the Investment Fund
has taken to be eligible to apply for
such loan program again; and
(III) the Secretary determines that
the Investment Fund is eligible to
apply for such loan program again.
(K) Labor-management cooperation.--Notwithstanding
any other provision of law, including the National
Labor Relations Act (29 U.S.C. 151 et seq.), any
recipient of a loan under this section who is an
employer, and any labor organization who represents or
seeks to represent any employees or only those
employees who perform or will perform work funded by a
loan provided under this section, shall be subject to
the provisions of section 103(k) of this title.
(L) Wage rate requirements.--
(i) Davis-bacon.--All laborers and
mechanics employed by the covered entity
receiving funding under this section or
employed by contractors or subcontractors
related to a covered project, shall be paid
wages at rates not less than those prevailing
on similar projects in the locality, as
determined by the Secretary of Labor in
accordance with subchapter IV of chapter 31 of
title 40, United States Code (commonly referred
to as the ``Davis-Bacon Act'').
(ii) Authority.--The Secretary of Labor
shall have, with respect to the labor standards
specified in this subparagraph, the authority
and functions set forth in Reorganization Plan
Numbered 14 of 1950 (5 U.S.C. App.; relating to
coordination of administration and consistency
of enforcement of certain labor standards for
Federal employees) and section 3145 of title
40, United States Code.
(4) Oversight.--Not later than 2 years after the first loan
is awarded to the Investment Fund under the loan program
established in section 103(a), the Inspector General of the
Department of Commerce shall audit the Investment Fund and
submit to Congress a report--
(A) that assesses whether the Investment Fund has
complied with the requirements of this title,
including--
(i) the requirements under section 103(b)
for maintaining eligibility for the joint loan
program;
(ii) the requirements under section 103(h)
regarding the proper use of awarded or
guaranteed funds;
(iii) the exclusion of foreign entities of
concern or foreign countries of concern; and
(iv) any additional requirements that the
Investment Fund must meet as determined
appropriate by the Secretary; and
(B) that proposes a course of action for the
Secretary to--
(i) remedy each violation by the Investment
Fund found, if any; and
(ii) monitor the progress of the Investment
Fund towards remedying each violation found by
the Secretary.
(c) Exclusion of Certain Funds.--The Investment Fund under
subsection (b) may not accept funds from, allow membership to, create
research collaborations with, or partner with a foreign entity of
concern or a foreign entity within a foreign country of concern or a
nonmarket economy country.
SEC. 106. AUTHORIZATION OF APPROPRIATIONS.
(a) Authorization of Appropriations.--There is authorized to be
appropriated to the Department of Commerce for the national center
established in section 102 the following amounts for the applicable
fiscal year:
(1) $30,000,000 for fiscal year 2026.
(2) $45,000,000 for fiscal year 2027.
(3) $70,000,000 for fiscal year 2028.
(4) $85,000,000 for fiscal year 2029.
(5) $100,000,000 for each of fiscal years 2030 and any
fiscal year thereafter before the date described in section
107.
(b) Authorization of Loan Authority.--There is authorized to be
appropriated to the Department of Commerce for the loan and loan
guarantee program established in section 103 the following amounts for
the applicable fiscal year:
(1) $1,000,000,000 for fiscal year 2026.
(2) $2,500,000,000 for fiscal year 2027.
(3) $5,000,000,000 for fiscal year 2028.
(4) $7,500,000,000 for fiscal year 2029.
(5) $10,000,000,000 for fiscal year 2030 and any fiscal
year thereafter before the date described in section 107.
(c) Limitation and Minimum Thresholds for Loan Authority.--Of the
amounts appropriated pursuant to the authorization under subsection (b)
for any fiscal year, other than amounts provided to the Investment Fund
established under section 105(b)(1), the Secretary shall ensure to the
greatest extent practicable that--
(1) a maximum of 30 percent of the available amounts are
provided with respect to investments into facilities in foreign
countries of interest that--
(A) relate to the extraction of critical materials
significantly unavailable for domestic extraction; and
(B) prioritize secondary impacts to the United
States, including through purchase agreements with
domestic manufacturers;
(2) a maximum of 20 percent of the available amounts are
provided with respect to investment into facilities within the
United States relating to the extraction of domestically
available critical materials in the United States;
(3) a minimum of 5 percent of the available amounts are
provided with respect to investment into facilities related to
the manufacturing of necessary equipment for the manufacturing
of critical materials; and
(4) a minimum of 10 percent of the available amounts are
provided with respect to facilities located within the United
States related to--
(A) the reclamation of critical materials from
spent and damaged end-use components through recycling
processes; or
(B) the demonstration, deployment, or
commercialization of innovative technologies such as
qualified substitutes.
SEC. 107. TERMINATION.
This title shall terminate on the date that is 10 years after the
date of the enactment of this Act.
SEC. 108. DEFINITIONS.
In this title:
(1) Appropriate committees of congress.--The term
``appropriate committees of Congress'' means--
(A) the Committee on Energy and Natural Resources,
the Committee on Commerce, Science, and Transportation,
the Committee on Foreign Relations, the Committee on
Armed Services, and the Committee on Appropriations of
the Senate; and
(B) the Committee on Energy and Commerce, the
Committee on Foreign Affairs, the Committee on Armed
Services, the Committee on Science, Space, and
Technology, the Committee on Appropriations, the
Committee on Natural Resources, and the Committee on
Ways and Means of the House of Representatives.
(2) Byproduct.--The term ``byproduct'' has the meaning
given such term in section 7002(a)(1) of the Energy Act of 2020
(30 U.S.C. 1606(a)(1)).
(3) Conversion.--The term ``conversion'' means the process
to alter a refined or purified critical material to a secondary
compound that is subject to supply chain disruptions relevant
to the national, energy, and economic security of the United
States, including the manufacturing of magnets, alloys, or
multicompound chemistries, including such chemistries at solid,
liquid, or gaseous states.
(4) Covered entity.--The term ``covered entity'' means a
nonprofit entity, a private entity, a consortium of private
entities, or a consortium of nonprofit, public, and private
entities--
(A) with a demonstrated ability to--
(i) substantially finance, construct,
expand, or modernize a facility relating to the
extraction, processing or refining, conversion,
recycling, or research and development of
critical materials; or
(ii) substantially finance and repurpose an
existing facility, including former
manufacturing sites, to construct, expand, or
modernize the facility for extraction,
processing or refining, conversion, recycling,
or research and development of critical
materials; and
(B) that is determined by the Secretary of
Commerce, in consultation with the Secretary of
Defense, the Secretary of Energy, the Secretary of the
Interior, the Secretary of State, and the Director of
National Intelligence--
(i) to be owned or operated by, or a
subsidiary of, an entity located in the United
States or a foreign entity that has an
extensive presence in the United States; and
(ii) not to be owned or operated by, or a
subsidiary of--
(I) any foreign entity of concern
or an entity located in a foreign
country of concern; or
(II) any entity engaged in conduct
that is detrimental to the national
security or foreign policy of the
United States, including entities that
do not uphold international law
relating to human rights or
environmental protections.
(5) Covered trade action.--The term ``covered trade
action'' means any ongoing investigation or final order
pursuant to the Trade Act of 1974 (19 U.S.C. 2101 et seq.),
section 701 of the Tariff Act of 1930 (19 U.S.C. 1671), section
731 of the Tariff Act of 1930 (19 U.S.C. 1673), or any other
relevant trade law as determined by the Secretary.
(6) Critical material.--The term ``critical material'' has
the meaning given such term in section 7002(a)(2) of the Energy
Act of 2020 (30 U.S.C. 1606(a)(2)).
(7) Critical material manufacturing.--The term ``critical
material manufacturing'' means any manufacturing process
related to any of the following:
(A) Extraction of a critical material from the
natural ecosystem, including as a byproduct.
(B) Refining or processing a critical material.
(C) The conversion of a critical material into a
secondary compound.
(D) The recycling of a critical material from used
manufacturing components, including technology
components.
(E) Any other relevant manufacturing process that
produces a qualified substitute for use in the critical
material supply chain.
(8) Foreign country of concern.--The term ``foreign country
of concern'' has the meaning given such term in section 9901 of
the William M. (Mac) Thornberry National Defense Authorization
Act for Fiscal Year 2021 (15 U.S.C. 4651).
(9) Foreign country of interest.--The term ``foreign
country of interest'' means a foreign country or a political
subdivision of a foreign country that is not a foreign country
of concern and with respect to which the Secretary of Commerce,
in collaboration with the Secretary of State and the United
States Trade Representative, determines that--
(A) the environmental protections of such country
with respect to the production of critical materials
meet or exceed similar protections in the United
States; and
(B) no products of the country are prohibited for
importation into the United States pursuant to section
307 of the Tariff Act of 1930 (19 U.S.C. 1307).
(10) Foreign entity.--The term ``foreign entity'' has the
meaning given such term in section 9901 of the William M. (Mac)
Thornberry National Defense Authorization Act for Fiscal Year
2021 (15 U.S.C. 4651).
(11) Foreign entity of concern.--The term ``foreign entity
of concern'' has the meaning given such term in section 9901 of
the William M. (Mac) Thornberry National Defense Authorization
Act for Fiscal Year 2021 (15 U.S.C. 4651).
(12) Industrial decarbonization practice.--The term
``industrial decarbonization practice'' means--
(A) any technology, practice, or technique that
lowers the environmental impact or energy requirements
of an industrial process;
(B) any agreement with a local or regionally
relevant electrical utility to acquire the majority of
the required power for a facility from renewable
sources; or
(C) other technologies, practices, or techniques to
promote sustainability and reduce and mitigate any
environmental degradation that the Secretary of
Commerce, in consultation with the Secretary of Energy,
deems eligible.
(13) Nonmarket country economy.--The term ``nonmarket
country economy'' has the meeting given such term in section
771(18) of the Tariff Act of 1930 (19 U.S.C. 1677(18)).
(14) Nonprofit entity.--The term ``nonprofit entity'' means
an entity described in section 501(c)(3) of the Internal
Revenue Code of 1986 and exempt from taxation under section
501(a) of such Code.
(15) Person.--The term ``person'' includes an individual,
partnership, association, corporation, organization, or any
other combination of individuals.
(16) Qualified substitute.--The term ``qualified
substitute'' means any verifiable alternative to a critical
material able to carry out an essential function (as such term
is used in section 7002(a)(2)(ii) of the Energy Act of 2020 (30
U.S.C. 1606(a)(2)(ii))) of a critical material.
(17) Recycling.--The term ``recycling'' means the process
of collecting and processing spent materials and devices and
turning the materials and devices into raw materials or
components that can be reused either partially or completely.
(18) Refined or purified critical material.--The term
``refined or purified critical material'' means a critical
material that has undergone any relevant manufacturing process
to remove impurities and to meet industry standards of purity
or concentration for downstream use cases post-extraction or
recycling.
(19) Secretary.--Unless otherwise specified, the term
``Secretary'' means the Secretary of Commerce, acting through
the Center established in section 102.
TITLE II--CRITICAL MATERIAL TAX CREDITS
SEC. 201. CRITICAL MATERIAL INVESTMENT TAX CREDIT.
(a) In General.--Subpart E of part IV of subchapter A of chapter 1
of the Internal Revenue Code of 1986 is amended by inserting after
section 48E the following new section:
``SEC. 48F. CRITICAL MATERIAL INVESTMENT CREDIT.
``(a) Establishment of Credit.--
``(1) In general.--For purposes of section 46, the critical
material investment credit for any taxable year is an amount
equal to the applicable percentage of the qualified investment
for such taxable year with respect to any critical material
facility of an eligible taxpayer.
``(2) Applicable percentage.--
``(A) Base rate.--In the case of any critical
material facility, the applicable percentage shall be
15 percent.
``(B) Alternative rate.--In the case of any
critical material facility that meets either of the
following criteria, the applicable percentage shall be
25 percent:
``(i) The critical material facility
fulfills rules similar to the rules of section
45(b)(7).
``(ii) The primary purpose of the critical
material facility is to produce--
``(I) a critical material that the
Secretary, in consultation with the
heads of other relevant Federal
agencies and departments, determines
has a supply which is significantly
vulnerable to disruption (including
restrictions associated with foreign
political risk, abrupt demand growth,
military conflict, violent unrest,
anti-competitive or protectionist
behaviors, and other risks throughout
the supply chain),
``(II) a qualified substitute, or
``(III) a recycled critical
material.
``(3) Definitions.--For the purpose of this section--
``(A) Critical material.--The term `critical
material' has the meaning given such term in section
7002(a)(2) of the Energy Act of 2020.
``(B) Critical material facility.--The term
`critical material facility' means a facility with
respect to which the taxpayer makes an irrevocable
election to have this subparagraph apply for which the
primary purpose is--
``(i) extraction, processing, refining, or
recycling of--
``(I) a critical material, or
``(II) a qualified substitute,
``(ii) converting a critical material into
a magnet, an alloy, or a multicompound
chemistry (in a solid, liquid, or gaseous
state) that the Secretary, in consultation with
the Secretary of Energy and the Secretary of
the Interior, determines--
``(I) has a supply chain which is
vulnerable to disruption (including
restrictions associated with foreign
political risk, abrupt demand growth,
military conflict, violent unrest,
anti-competitive or protectionist
behaviors, and other risks throughout
the supply chain); and
``(II) serves an essential function
in the manufacturing of a product
(including energy technology-, defense-
, currency-, agriculture-, consumer
electronics-, and health care-related
applications), the absence of which
would have significant consequences for
the economic or national security of
the United States,
``(iii) specialized manufacturing equipment
used primarily to carry out a process described
in clause (i) or (ii), or
``(iv) specialized equipment for research
and development relating to a purpose described
in clause (i), (ii), or (iii).
``(C) Qualified substitute.--The term `qualified
substitute' means any material that the Secretary, in
consultation with the Secretary of Energy and the
Secretary of the Interior, determines is a verifiable
alternative to a critical material that can carry out
an essential function of such critical material in a
technology component.
``(D) Technology component.--The term `technology
component' means--
``(i) any manufactured component used to
manufacture any item which is essential to
national security, to energy independence, or
to the economic competitiveness of the United
States, or
``(ii) an eligible component (as defined in
section 45X).
``(E) Eligible taxpayer.--The term `eligible
taxpayer' means, with respect to a taxable year, any
taxpayer which is not--
``(i) at any point during the taxable year,
an entity under the influence, control, or
ownership of--
``(I) a foreign entity of concern
(as defined in section 9901 of the
William M. (Mac) Thornberry National
Defense Authorization Act for Fiscal
Year 2021), or
``(II) a firm domiciled in a non-
market economy (as defined in section
771(18) of the Tariff Act of 1930), or
``(ii) subject to a covered trade action
(as defined in section 108 of the Unearth
America's Future Act) at any point during the
taxable year.
``(b) Qualified Investment.--
``(1) In general.--For purposes of subsection (a), the
qualified investment with respect to any critical material
facility for any taxable year is the basis of any qualified
property placed in service by the taxpayer during such taxable
year which is part of such critical material facility.
``(2) Qualified property.--
``(A) In general.--For purposes of this subsection,
the term `qualified property' means property--
``(i) which is tangible property,
``(ii) with respect to which depreciation
(or amortization in lieu of depreciation) is
allowable,
``(iii) which is--
``(I) constructed, reconstructed,
or erected by the taxpayer, or
``(II) acquired by the taxpayer if
the original use of such property
commences with the taxpayer, and
``(iv) which is integral to the operation
of a critical material facility.
``(B) Building and structural components.--
``(i) In general.--The term `qualified
property' includes any building or its
structural components which otherwise satisfy
the requirements of subparagraph (A).
``(ii) Exception.--Clause (i) shall not
apply with respect to a building or portion of
a building used for offices, administrative
services, or other functions unrelated to
manufacturing.
``(3) Coordination with rehabilitation credit.--The
qualified investment with respect to any critical material
facility shall not include that portion of the basis of any
property which is attributable to qualified rehabilitation
expenditures (as defined in section 47(c)(2)).
``(4) Certain progress expenditure rules made applicable.--
Rules similar to the rules of subsections (c)(4) and (d) of
section 46 (as in effect on the day before the date of the
enactment of the Revenue Reconciliation Act of 1990) shall
apply for purposes of subsection (a).
``(c) Elective Payment.--
``(1) In general.--Except as otherwise provided in
paragraph (2)(A), in the case of a taxpayer making an election
(at such time and in such manner as the Secretary may provide)
under this subsection with respect to the credit determined
under subsection (a), such taxpayer shall be treated as making
a payment against the tax imposed by subtitle A (for the
taxable year with respect to which such credit was determined)
equal to the amount of such credit.
``(2) Special rules.--Rules similar to the rules of section
48D(d)(2) shall apply with respect to an election under
paragraph (1).
``(d) Denial of Double Benefit.--No credit shall be allowed under
section 45X or under section 45BB for any taxable year with respect to
any critical material facility with respect to a credit is allowed
under this section.
``(e) Termination of Credit.--The credit allowed under this section
shall not apply to property the construction of which begins after
December 31, 2029.''.
(b) Conforming Amendments.--
(1) Section 46 of such Code is amended by striking ``and''
at the end of paragraph (6), by striking the period at the end
of paragraph (7) and inserting ``, and'', and by adding at the
end the following new paragraph:
``(8) The critical material investment credit.''.
(2) Section 49(a)(1)(C) of such Code is amended by striking
``and'' at the end of clause (vii), by striking the period at
the end of clause (viii) and inserting ``, and'', and by adding
at the end the following new clause:
``(ix) the basis of any property which is
part of a critical material facility under
section 48F.''.
(3) Section 50(a)(2)(E) is amended by striking ``or
48E(e)'' and inserting ``48E(e), or 48F(b)(4)''.
(4) The table of sections for subpart E of part IV of
subchapter A of chapter 1, as amended by section 107(d) of the
CHIPS Act of 2022 (Public Law 117-167), is amended by inserting
after the item relating to section 48E the following new item:
``Sec. 48F. Critical material investment credit.''.
(c) Effective Date.--The amendments made by this section shall
apply to property placed in service after the date of the enactment of
this Act.
SEC. 202. CRITICAL MATERIAL PRODUCTION TAX CREDIT.
(a) In General.--Subpart D of part IV of subchapter A of chapter 1
of the Internal Revenue Code of 1986 is amended by inserting after
section 45AA the following new section:
``SEC. 45BB. CRITICAL MATERIAL PRODUCTION CREDIT.
``(a) In General.--
``(1) Allowance of credit.--For purposes of section 38, the
critical material production credit for any taxable year is an
amount equal to the sum of the credit amounts determined under
subsection (b) with respect to each eligible material which
is--
``(A) produced by the taxpayer in the United
States, and
``(B) during the taxable year, sold by such
taxpayer to an unrelated person.
``(2) Production and sale must be in trade or business.--
Any eligible material produced and sold by the taxpayer shall
be taken into account only if the production and sale described
in paragraph (1) is in a trade or business of the taxpayer.
``(3) Unrelated person.--
``(A) In general.--For purposes of this subsection,
a taxpayer shall be treated as selling eligible
material to an unrelated person if such eligible
material is sold to such person by a person related to
the taxpayer.
``(B) Election.--
``(i) In general.--At the election of the
taxpayer (in such form and manner as the
Secretary may prescribe), a sale of eligible
material by such taxpayer to a related person
shall be deemed to have been made to an
unrelated person.
``(ii) Requirement.--As a condition of, and
prior to, any election described in clause (i),
the Secretary may require such information or
registration as the Secretary deems necessary
for purposes of preventing duplication, fraud,
or any improper or excessive amount determined
under paragraph (1).
``(b) Credit Amount.--
``(1) In general.--Subject to paragraph (2), the amount
determined under this subsection with respect to any eligible
material shall be equal to--
``(A) in the case of a taxpayer producing eligible
material at the initial production stage, the eligible
rate shall be equal to 15 percent of the taxpayer's
cost of production, or
``(B) in the case of an eligible material with
respect to which each input eligible material is
sourced--
``(i) domestically, 10 percent of the
taxpayer's cost of production, or
``(ii) domestically or from a country
listed by the Secretary under subsection
(d)(1), 7.5 percent of the taxpayer's cost of
production.
``(2) Increase in credit amount for meeting certain
standards.--In the case of a taxpayer that meets 1 of the
following criteria with respect to the eligible material with
respect to which the amount is determined under paragraph (1),
the amount determined under paragraph (1) (determined without
regard to this paragraph) shall be increased by 10 percentage
points:
``(A) Each employee, contractor, or subcontractor
employed in relation to the production of the eligible
material by the taxpayer during the taxable year was
paid wages at rates not less than the prevailing rates
for the applicable industry in the locality in which
such production occurred as most recently determined by
the Secretary of Labor, in accordance with subchapter
IV of chapter 31 of title 40, United States Code, and
the taxpayer fulfilled the apprenticeship requirements
established by the Secretary under subsection (d)(2).
``(B) Produces--
``(i) a critical material that the
Secretary, in consultation with the heads of
other relevant Federal agencies and
departments, determines has a supply which is
significantly vulnerable to disruption
(including restrictions associated with foreign
political risk, abrupt demand growth, military
conflict, violent unrest, anti-competitive or
protectionist behaviors, and other risks
throughout the supply chain),
``(ii) a qualified substitute, or
``(iii) a recycled critical material.
``(3) Phase out.--
``(A) In general.--In the case of any eligible
material sold after December 31, 2030, the amount
determined under this subsection with respect to such
material shall be equal to the product of--
``(i) the amount determined under paragraph
(1) with respect to such material, as
determined without regard to this paragraph,
multiplied by
``(ii) the phase out percentage under
subparagraph (B).
``(B) Phase out percentage.--The phase out
percentage under this subparagraph is equal to--
``(i) in the case of an eligible material
sold during calendar year 2031, 75 percent,
``(ii) in the case of an eligible material
sold during calendar year 2032, 50 percent,
``(iii) in the case of an eligible material
sold during calendar year 2033, 25 percent,
``(iv) in the case of an eligible material
sold after December 31, 2034, 0 percent.
``(c) Special Rules.--For purposes of this section--
``(1) Related persons.--Persons shall be treated as related
to each other if such persons would be treated as a single
employer under the regulations prescribed under section 52(b).
``(2) Pass-thru in the case of estates and trusts.--Under
regulations prescribed by the Secretary, rules similar to the
rules of subsection (d) of section 52 shall apply.
``(3) Sale of integrated components.--For purposes of this
section, a person shall be treated as having sold an eligible
material to an unrelated person if such material is integrated,
incorporated, or assembled into a technology component which is
sold to an unrelated person.
``(d) Regulations.--
``(1) Identification of safe acquisition sources.--Not
later than 1 year after the date of the enactment of this
section, the Secretary, in consultation with the Secretary of
State, shall publish and maintain a list of countries that meet
the following criteria:
``(A) The country has environmental protections
with respect to the production of eligible materials
which meet or exceed such protections in the United
States.
``(B) No product of the country is prohibited for
importation into the United States pursuant to section
307 of the Tariff Act of 1930.
``(C) The country has labor laws which ensure wage
rates are determined by free bargaining between labor
and management.
``(D) The country is not--
``(i) a foreign entity of concern (as
defined in section 9901 of the William M. (Mac)
Thornberry National Defense Authorization Act
for Fiscal Year 2021), or
``(ii) a nonmarket economy country (as
defined in section 771(18) of the Tariff Act of
1930).
``(2) Apprenticeship requirement.--The Secretary, in
consultation with the Secretary of Labor, shall establish such
apprenticeship requirements as are appropriate for each
affected industry for purposes of subsection (b)(2)(A).
``(e) Limitation.--For the purposes of calculating the eligible
credit amount for a taxpayer, the taxpayer shall be unable to claim an
eligible credit under this section if the taxpayer has already claimed
an eligible credit for production of an applicable critical mineral
under section 45X for the current year in which this section is being
claimed.
``(f) Definitions.--For the purpose of this section--
``(1) Terms used in section 48f.--The terms `eligible
material', `qualified substitute', `critical material', and
`technology component' have the meanings given such terms in
section 48F.
``(2) Initial production stage.--The term `initial
production stage' means a stage of production in which the
taxpayer produces an eligible material through--
``(A) extraction,
``(B) recycling, or
``(C) in the case of a qualified substitute, any
means.
``(3) Taxpayer's cost of production.--The term `taxpayer's
cost of production' means amounts paid or incurred by the
taxpayer to produce an eligible material, excluding amounts
paid or incurred--
``(A) for labor,
``(B) for transportation of any property, and
``(C) administrative expenses.''.
(b) Credit Allowed as Part of General Business Credit.--Section
38(b) of such Code is amended by striking ``plus'' at the end of
paragraph (40), by striking the period at the end of paragraph (41) and
inserting ``, plus'', and by adding at the end the following new
paragraph:
``(42) section 45BB (critical material production
credit).''.
(c) Clerical Amendment.--The table of sections for subpart D of
part IV of subchapter A of chapter 1 of such Code is amended by adding
at the end the following new item:
``Sec. 45BB. Critical material production credit.''.
(d) Effective Date.--The amendments made by this section shall
apply to materials sold after the date of the enactment of this Act.
SEC. 203. CONSULTATION.
(a) Industrial Advisory Board.--
(1) Establishment.--The Secretary of the Treasury shall
establish an advisory committee to be composed of not fewer
than 15 members, including representatives of industry,
academia, trade organizations, environmental protection
organizations, labor organizations, and international partners,
as appropriate, who are qualified to provide advice on matters
relevant to increasing domestic capacity of critical materials
manufacturing.
(2) Representation of certain groups.--The Secretary, in
carrying out paragraph (1), shall ensure that at least 2
members of the advisory committee established under such
paragraph are representatives of--
(A) an environmental protection organization, and
(B) a labor organization.
(3) FACA exemption.--Section 14 of the Federal Advisory
Committee Act (5 U.S.C. App.) shall not apply to the advisory
committee established under this subsection.
(b) Interagency Coordination.--In carrying out the development of
guidance necessary to the implementation of subsection (a), the
Secretary of the Treasury shall consult the following:
(1) The advisory committee established under subsection
(a)(1).
(2) The Secretary of Agriculture.
(3) The Secretary of Commerce.
(4) The Secretary of Defense.
(5) The Secretary of Energy.
(6) The Secretary of Health and Human Services.
(7) The Secretary of Homeland Security.
(8) The Secretary of the Interior.
(9) The United States Trade Representative.
(10) The Director of the White House Office of Science and
Technology Policy.
(11) Such other head of a Federal agency as the Secretary
determines appropriate.
TITLE III--CRITICAL MATERIAL RESEARCH AND DEVELOPMENT
SEC. 301. CLARIFYING MINING RESEARCH AT THE NATIONAL SCIENCE
FOUNDATION.
(a) In General.--Section 10359 of title III of division B of the
Research and Development, Competition, and Innovation Act (42 U.S.C.
19067; Public Law 117-167) is amended--
(1) in the section heading, by striking ``minerals'' and
inserting ``materials'';
(2) in subsection (a)--
(A) in the subsection heading, by striking
``Minerals'' and inserting ``Materials'';
(B) by amending paragraph (1) to read as follows:
``(1) In general.--In order to support supply chain
resiliency, the Director shall make awards, on a competitive
basis, to institutions of higher education, nonprofit
organizations, or private entities (or consortia of such
institutions, organizations, or entities) to support research
and development that will accelerate innovation to advance
critical materials mining strategies and technologies for the
purpose of making better use of domestic resources and
eliminating national reliance on critical materials that are
subject to supply disruptions.'';
(C) in paragraph (2)--
(i) by amending subparagraph (A) to read as
follows:
``(A) advancing mining research and development
activities to develop new mapping and mining
technologies and techniques, including advanced
critical material extraction and production,
separation, alloying, or processing techniques and
technologies that can decrease energy intensity to
improve existing or develop new supply chains of
critical materials, and yield more efficient,
economical, and environmentally benign mining
practices;'';
(ii) by striking subparagraph (B) and
redesignating subparagraphs (C), (D), (E), (F),
(G), and (H), as subparagraphs (B), (C), (D),
(E), (F), and (G), respectively;
(iii) in subparagraph (C), as so
redesignated, by striking ``minerals'' and
inserting ``materials'';
(iv) in subparagraph (D), as so
redesignated, by striking ``minerals'' and
inserting ``materials'';
(v) in subparagraph (E), as so
redesignated, by striking ``minerals'' and
inserting ``materials''; and
(vi) in subparagraph (F), as so
redesignated, by striking ``minerals'' and
inserting ``materials'';
(D) by redesignating paragraph (3) as paragraph
(4); and
(E) by inserting after paragraph (2) the following
new paragraph:
``(3) Collaboration.--In carrying out this subsection, the
Director shall collaborate with the Secretary of the Interior,
the Secretary of Energy, the Director of the National Institute
of Standards and Technology, the Director of the Office of
Science and Technology Policy, and the heads of other relevant
Federal departments and agencies, including facilities such as
the National Laboratories, Manufacturing USA institutes, and
other federally funded research and development centers,
academia, industry, nonprofit organizations, labor
organizations, and international partners, as appropriate, to
carry out the purposes described in paragraph (1).''; and
(3) by amending subsection (c) to read as follows:
``(c) Critical Material Defined.--In this section, the term
`critical material' has the meaning given such term in section
7002(a)(2) of the Energy Act of 2020 (30 U.S.C. 1606(a)(2)).''.
(b) Clerical Amendment.--The table of contents in sections 1 and
10000 of Public Law 117-167 are amended by striking the items relating
to section 10359 and inserting the following new items:
``Sec. 10359. Critical materials mining research and development.''.
SEC. 302. CLARIFYING MINING RESEARCH AT THE DEPARTMENT OF ENERGY.
Section 40210 of the Infrastructure Investment and Jobs Act (42
U.S.C. 18743) is amended--
(1) in subsection (a)--
(A) by redesignating paragraphs (3), (4), (5), (6),
(7), (8), (9), and (10) as paragraphs (4), (5), (6),
(7), (8), (9), (10), and (11), respectively;
(B) by inserting after paragraph (2) the following
new paragraph:
``(3) Critical material.--The term `critical material' has
the meaning given such term in section 7002(a)(2) of the Energy
Act of 2020 (30 U.S.C. 1606(a)(2)).''; and
(C) by adding at the end the following new
paragraph:
``(12) Skilled technical workforce.--The term `skilled
technical workforce' has the meaning given such term in section
4(b) of the Innovations in Mentoring, Training, and
Apprenticeships Act (42 U.S.C. 1862p note; Public Law 115-
402).''; and
(2) by amending subsection (b) to read as follows:
``(b) Critical Material Mining Research and Development.--
``(1) In general.--In order to support supply chain
resiliency, the Secretary shall issue awards, on a competitive
basis, to eligible entities described in paragraph (2) to
support research and development activities that will
accelerate innovation to advance critical materials mining and
associated extraction technologies and strategies for the
purposes of--
``(A) making better use of domestic resources;
``(B) eliminating national reliance on critical
materials that are subject to supply disruptions; and
``(C) promoting sustainability with critical
materials mining.
``(2) Eligible entities.--Entities eligible to receive an
award under paragraph (1) are the following:
``(A) Federally funded facilities, including
National Laboratories, Manufacturing USA institutes,
and other federally funded research and development
centers.
``(B) Relevant State, local, or Tribal governmental
entities with specialized resources to carry out
paragraph (1).
``(C) Institutions of higher education.
``(D) Nonprofit organizations.
``(E) Consortia of entities described in
subparagraphs (A) through (D), including consortia that
collaborate with private industry.
``(3) Use of funds.--Activities funded by an award under
this section may include the following:
``(A) Advancing mining research and development
activities to develop new mapping and mining
technologies and techniques, including advanced
critical material extraction and separation--
``(i) to improve existing, or to develop
new, supply chains of critical materials; and
``(ii) to yield more efficient, economical,
and environmentally benign mining practices,
including through innovative technology and
relevant mining equipment applications.
``(B) Conducting long-term earth observation of
reclaimed mine sites, including the study of the
evolution of microbial diversity at those sites.
``(C) Examining the application of artificial
intelligence for geological exploration of critical
materials, including what size and diversity of data
sets would be required.
``(D) Examining the application of machine learning
for detection and sorting of critical materials,
including what size and diversity of data sets would be
required.
``(E) Conducting detailed isotope studies of
critical materials and the development of more refined
geologic models.
``(F) Providing education, training, and relevant
research opportunities to--
``(i) post-secondary students to expand the
critical materials workforce, partially
students in engineering and material science
disciplines; and
``(ii) the skilled technical workforce.
``(4) Collaboration.--In carrying out this subsection, the
Secretary shall collaborate with the Secretary of the Interior,
the Director of the National Science Foundation, the Director
of the National Institute of Standards and Technology, the
Director of the Office of Science and Technology Policy, and
the heads of other relevant Federal departments and agencies,
including facilities such as the National Laboratories,
Manufacturing USA institutes, and other federally funded
research and development centers, academia, industry, nonprofit
organizations, labor organizations, and international partners,
as appropriate, to carry out the purposes described in
paragraph (1).
``(5) Existing programs.--The Secretary shall ensure awards
issued under this subsection are complementary and not
duplicative of existing programs across the Department of
Energy and the Federal Government.''.
SEC. 303. CRITICAL MATERIALS RESEARCH AND DEVELOPMENT.
(a) In General.--In support of the security and competitiveness of
the United States, the Director of the National Science Foundation (in
this section referred to as the ``Director'') shall make awards, on a
competitive basis, to institutions of higher education, nonprofit
organizations, or private entities (or consortia of such institutions,
organizations, or entities) for the purposes described in subsection
(b).
(b) Purposes Described.--The purposes described in this subsection
include any of the following:
(1) Research and development activities to advance
innovative technologies, materials, and techniques relevant to
the sustainability, security, and traceability of critical
material supply chains, including the following:
(A) Technologies for the manufacturing of critical
materials, including innovative equipment applications
and industrial decarbonization processes, across
processes such as processing, refining, conversion, and
recycling.
(B) Innovative and emerging materials for improved
or new uses within the supply chain, including the
following:
(i) Innovative alloys, magnets, anodes, and
other multichemical compound materials.
(ii) Qualified substitutes designed to
replace part or all of a traditionally
extracted critical material within a downstream
application.
(iii) Byproducts of existing supply chains
that may be recovered at sufficient quantities
for use.
(C) Innovative and emerging downstream applications
that--
(i) reduce reliance on critical material
supply chains subject to disruptions; or
(ii) reduce or replace part or all of a
traditionally extracted critical material.
(D) Any technology, material, or technique to
promote circularity and sustainability within the
critical material supply chain through increasing the
reusability of a critical material.
(2) Education and workforce development opportunities to
support a robust critical materials workforce, which may
include any of the following:
(A) Providing training and research opportunities
to undergraduate and graduate students to ensure a
robust critical material technical workforce.
(B) Providing training and other educational
pathways to ensure a robust critical material
manufacturing workforce through short-term credentials
and career and technical education activities,
including the following:
(i) Pathways designed to upskill and
reskill, as the case may be, the existing
workforce.
(ii) Pathways and emerging trends designed
to address workforce shortages, including as a
result of skill gaps, of the future workforce.
(c) Testbeds.--In carrying out this section, subject to the
availability of appropriations for such purposes, the Director may
establish test beds, pursuant to section 10390 of the Research and
Development, Competition, and Innovation Act (42 U.S.C. 19110; enacted
as part of division B of Public Law 117-167), to advance innovative
technologies, materials, and techniques for the purpose of creating
sustainable, secure, and transparent critical material supply chains.
In doing so, the Director shall prioritize the translation and
commercialization of the following:
(1) Qualified substitutes.
(2) Byproducts.
(3) Downstream applications using innovative combinations
of critical materials, including byproducts, qualified
substitutes, or recycled content.
(4) Decarbonization technologies, including any such
technology that improves sustainability of the manufacturing
process for critical materials.
(5) Recycling technologies.
(d) Critical Materials Education.--
(1) In general.--The Director shall, on a competitive,
merit-reviewed basis, make awards to institutions of higher
education and nonprofit organizations (or consortia of such
institutions and organizations, which may also include private
entities) to establish partnerships to enhance and broaden
participation in fields relevant for education and training for
the critical material supply chain.
(2) Activities.--Awards made under this subsection shall be
used for the following:
(A) To--
(i) conduct training and education
activities, including curricula design,
development, dissemination, and assessment; and
(ii) share information and best practices
across the network of awardees.
(B) To develop regional partnerships among
associate degree-granting colleges, bachelor degree-
granting institutions, workforce development programs,
labor organizations, and industry to create a diverse
national technical workforce trained in fields relevant
to the critical material supply chain and ensure
education and training is meeting the evolving needs of
industry.
(C) To facilitate partnerships with employers,
employer consortia, or other private sector
organizations that offer apprenticeships, internships,
or applied learning experiences in fields relevant to
the critical material supply chain.
(D) To develop shared infrastructure available to
institutions of higher education, two-year colleges,
and private organizations to enable experiential
learning activities and provide physical or digital
access to training facilities and industry-standard
tools and processes.
(E) To create and disseminate public outreach to
support awareness of education and career opportunities
relevant to the critical material supply chain,
including through outreach to K-12 schools and STEM-
related organizations.
(F) To collaborate and coordinate with industry and
existing public and private organizations conducting
education and workforce development activities in
fields relevant to the critical material supply chain,
as practicable.
(3) National coordination.--To coordinate activities, best
practice sharing, and access to facilities across the
partnerships established in accordance with paragraph (1), the
Director shall ensure that activities carried out by the
partnerships under this subsection are coordinated to the
greatest extent possible.
(4) Priority.--To the extent practicable, the Director
shall prioritize awardees under paragraph (1) that include
entities focused on supporting the creation of a technical
workforce relevant to the critical material supply chain,
including entities such as associate degree-granting colleges,
career and technical entities, workforce development programs,
labor organizations, and industry.
(e) Collaboration.--In carrying out this section, the Director
shall collaborate with the Secretary of Energy, the Director of the
National Institute of Standards and Technology, the Director of the
Office of Science and Technology Policy, and the heads of other
relevant Federal departments and agencies, including facilities such as
the National Laboratories, Manufacturing USA institutes, and other
federally funded research and development centers, academia, industry,
nonprofit organizations, labor organizations, and international
partners, as appropriate, to carry out the purposes described in
subsection (b).
(f) Existing Programs.--The Director shall ensure awards made under
this section are complementary and not duplicative of existing programs
across the National Science Foundation and the Federal Government.
SEC. 304. CRITICAL MATERIALS STANDARDS AND METROLOGY.
(a) In General.--Subject to the availability of appropriations for
such purposes, the Director of the National Institute of Standards and
Technology (referred to in this section as the ``Director'') shall
carry out a critical materials program to enable advances and
breakthroughs in measurement science, technical standards, material
characterization, instrumentation, testing, and manufacturing,
including recycling, capabilities that will accelerate research and
development and produce relevant technical standards for sustainable,
secure, and traceable critical material supply chains.
(b) Activities.--In carrying out subsection (a), the Director shall
carry out measurement science, technical standards, material
characterization, instrumentation, testing, or other activities, as
appropriate, to support the following:
(1) Activities related to advancing innovative materials,
including byproducts and qualified substitutes, recycled
materials, and innovative combinations for downstream
applications.
(2) Activities related to advancing recycling processes of
critical materials, including techniques to improve reusability
of recycled content.
(3) Activities related to facilitating the development of
technical standards within the critical material supply chain
to promote interoperability, collaboration, and traceability.
(4) Activities related to paragraphs (1) through (3) with
international partners, as appropriate.
(5) Other activities identified by the Director, as
appropriate, to advance the goal described in such subsection.
(c) Critical Materials Recycling Consortium.--
(1) In general.--Subject to the availability of
appropriations for such purpose, the Director shall convene a
consortium to identify future standards and metrology needs to
promote advanced recycling processes of critical materials.
(2) Membership.--
(A) In general.--The members of the Consortium may
include representatives from the National Laboratories,
Manufacturing USA institutes, and other federally
funded research and development centers, academia,
industry, nonprofit organizations, labor organizations,
and international partners, as appropriate.
(B) Exclusion.--The Consortium may not offer
membership to any individual who is a representative of
a foreign entity of concern or a foreign entity of a
foreign country of concern.
(3) Responsibilities.--The Consortium shall--
(A) access the current gaps within relevant
technical standards and metrology regarding the needs
described in paragraph (1);
(B) identify any gaps in research necessary to meet
such needs; and
(C) provide recommendations regarding how Federal
agencies can address such gaps in carrying out
activities related to critical materials recycling.
(4) Report to congress.--Not later than two years after the
establishment of the Consortium, the Director shall submit to
the Committee on Commerce, Science, and Transportation of the
Senate and the Committee on Science, Space, and Technology of
the House of Representatives a report summarizing the findings
of the Consortium.
(5) Collaboration.--The Director shall ensure that the
activities carried out by the Consortium are complementary and
not duplicative of the collaborative activities carried out by
the Critical Materials Consortium established under section
7002(g)(8) of the Energy Act of 2020 (30 U.S.C. 1606(g)(8)).
(6) Termination.--The Consortium shall terminate five years
after its establishment.
(d) Collaboration.--In carrying out this section, the Director
shall collaborate with the Secretary of Energy.
(e) Existing Programs.--The Director shall ensure activities
carried out under this section are complementary and not duplicative of
existing programs across the National Institute of Standards and
Technology, the Department of Energy, and other Federal departments and
agencies.
SEC. 305. CRITICAL MATERIALS DEMONSTRATION.
Subsection (d) of section 40210 of the Infrastructure Investment
and Jobs Act (42 U.S.C. 18743) is amended to read as follows:
``(d) Grant Program for Pilot Projects To Expand Domestic Capacity
of Critical Materials.--
``(1) Establishment.--The Secretary shall establish a grant
program to finance pilot projects to promote domestic capacity,
reduce reliance on supply chains subject to disruptions, and
support innovation in the critical material supply chain.
``(2) Use of funds.--Pilot projects under paragraph (1) may
include any of the following to increase the domestic
capabilities of the United States to manufacture critical
materials across the entire cycle of the critical material
supply chain:
``(A) Innovative technologies, including
applications for manufacturing equipment and industrial
decarbonization.
``(B) Innovative and emerging materials for
improved or new uses with the supply chain, including
qualified substitutes, byproducts, or recycled or
reclaimed critical materials.
``(C) Innovative and emerging downstream
applications to reduce reliance on critical materials
subject to supply chain disruptions.
``(D) Any other technology, material, or technique
to promote circularity and sustainability, including
through environmentally benign processes, within the
critical material supply chain.
``(3) Limitations.--
``(A) Limitation on grant awards.--A grant awarded
under paragraph (1) may not exceed $25,000,000.
``(B) Economic viability.--In awarding grants under
paragraph (1), the Secretary shall give priority to
projects that the Secretary determines are likely to be
economically viable over the long term.
``(C) Priority.--In awarding grants under paragraph
(1), the Secretary shall seek to award not less than 40
percent of the total amount of grants awarded during
the fiscal year for projects relating to the following:
``(i) Qualified substitute.
``(ii) Secondary recovery.
``(iii) Recycling.
``(D) Prohibition on awards to foreign countries of
concern.--In awarding grants under paragraph (1), the
Secretary shall ensure that pilot projects do not
export for any manufacturing process of a critical
material to a foreign country of concern.
``(4) Collaboration.--In carrying out this subsection, the
Secretary shall collaborate with the Secretary of Commerce, the
Secretary of Defense, the Secretary of the Interior, the
Director of the National Science Foundation, the Director of
the National Institute of Standards and Technology, the
Director of the Office of Science and Technology Policy, and
the heads of other relevant Federal departments and agencies,
including facilities such as the National Laboratories,
Manufacturing USA institutes, and other federally funded
research and development centers, academia, industry, nonprofit
organizations, labor organizations, and international partners,
as appropriate, to carry out the purposes described in
paragraph (1).
``(5) Existing programs.--The Secretary shall ensure awards
made under paragraph (1) are complementary and not duplicative
of existing programs across the Department of Energy and the
Federal Government.
``(6) Authorization of appropriations.--There is authorized
to be appropriated to the Secretary to carry out this
subsection $150,000,000 for each of fiscal years 2026 through
2030.
``(7) Definitions.--In this subsection:
``(A) Conversion.--The term `conversion' means the
process to alter a refined or purified critical
material to a secondary compound that is subject to
supply chain disruptions relevant to the national,
energy, and economic security of the United States,
including the manufacturing of magnets, alloys, or
multicompound chemistries, including such chemistries
at solid, liquid, or gaseous states.
``(B) Critical material supply chain.--The term
`critical material supply chain' means the lifecycle of
a critical material, including the extraction,
processing or refining, conversion, and recycling of a
critical material.
``(C) Foreign country of concern.--The term
`foreign country of concern' has the meaning given such
term in section 9901 of the William M. (Mac) Thornberry
National Defense Authorization Act for Fiscal Year 2021
(15 U.S.C. 4651).
``(D) Qualified substitute.--The term `qualified
substitute' means any verifiable alternative to a
critical material, including converted critical
material compounds, able to carry out an essential
function (as such term is used in section
7002(a)(2)(ii) of the Energy Act of 2020 (30 U.S.C.
1606(a)(2)(ii))) of a critical material.
``(E) Refined or purified critical material.--The
term `refined or purified critical material' means a
critical material that has undergone any relevant
manufacturing process to remove impurities and to meet
industry standards of purity or concentration for
downstream use cases post-extraction or recycling.''.
SEC. 306. DEFINITIONS.
In this title:
(1) Byproduct.--The term ``byproduct'' has the meaning
given such term in section 7002(a)(1) of the Energy Act of 2020
(30 U.S.C. 1606(a)(1)).
(2) Conversion.--The term ``conversion'' means the process
to alter a refined or purified critical material to a secondary
compound that is subject to supply chain disruptions relevant
to the national, energy, and economic security of the United
States, including the manufacturing of magnets, alloys, or
multicompound chemistries, including such chemistries at solid,
liquid, or gaseous states.
(3) Critical material.--The term ``critical material'' has
the meaning given such term in section 7002(a)(2) of the Energy
Act of 2020 (30 U.S.C. 1606(a)(2)).
(4) Critical material supply chain.--The term ``critical
material supply chain'' means the lifecycle of a critical
material, including the extraction, processing or refining,
conversion, and recycling of a critical material.
(5) Foreign country of concern.--The term ``foreign country
of concern'' has the meaning given such term in section 9901 of
the William M. (Mac) Thornberry National Defense Authorization
Act for Fiscal Year 2021 (15 U.S.C. 4651).
(6) Foreign entity of concern.--The term ``foreign entity
of concern'' has the meaning given such term in section 9901 of
the William M. (Mac) Thornberry National Defense Authorization
Act for Fiscal Year 2021 (15 U.S.C. 4651).
(7) Qualified substitute.--The term ``qualified
substitute'' means any verifiable alternative to a critical
material, including converted critical material compounds, able
to carry out an essential function (as such term is used in
section 7002(a)(2)(ii) of the Energy Act of 2020 (30 U.S.C.
1606(a)(2)(ii))) of a critical material.
(8) Recycling.--The term ``recycling'' means the process of
collecting and processing spent materials and devices and
turning the materials and devices into raw materials or
components that can be reused either partially or completely.
(9) Refined or purified critical material.--The term
``refined or purified critical material'' means a critical
material that has undergone any relevant manufacturing process
to remove impurities and to meet industry standards of purity
or concentration for downstream use cases post-extraction or
recycling.
(10) Technical standard.--The term ``technical standard''
has the meaning given such term in section 12(d)(5) of the
National Technology Transfer and Advancement Act of 1995 (15
U.S.C. 272 note).
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